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1. Suppose the Fed creates excess reserves in the banking system by buying government bonds, but banks do not make more loans because economic conditions are bad. This situation is a problem of:
1. Cyclical asymmetry.
2. A restrictive money policy.
3. The net export effect.
4. A decrease in the Federal funds rate.
2. A Federal Reserve official notes: "A restrictive monetary policy can force a contraction of the money supply however an expansionary monetary policy might not achieve an expansion of the economy." The official has described the problem of the:
1. Change in taxes on monetary policy.
2. Inflexibility of monetary policy tools.
3. Cyclical asymmetry of monetary policy.
4. Political acceptability of monetary policy.
A monopolist that practices perfect price discrimination will choose an output level where marginal revenue is equal to marginal cost to maximise profit.
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After a certain point, the more hours you spend studying economics per day, the less you will learn with each added hour
1.-What are the short- and long-term economic benefits and cost associated with our current high federal government budget deficits 2.-Do you think the economic benefits outweigh the economic cost, why or why not
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